German economy minister meets with Opel bosses

BERLIN (AP) -- German Economy Minister Karl-Theodor zu Guttenberg was meeting Monday with the bosses of Adam Opel GmbH after the beleaguered German subsidiary of General Motors said it needs €3.3 billion ($4.2 billion) in government aid to stay afloat.

Guttenberg has demanded that the company present a plan for the future before the government will consider any aid to help preserve the roughly 25,000 jobs at Opel's various German facilities. Another stipulation was that no aid should flow to Opel's U.S. parent in Detroit.

The government will carry out a "very far-reaching examination" of the company's proposals to make sure that Opel has come up with "a truly viable perspective for the future," Guttenberg said on ARD television ahead of the meeting.

Only then will a decision be made on whether to provide Opel the funds, he said.

"We're dealing with taxpayer money and therefore we need sound consideration," he said.

Through the week Guttenberg plans further meetings with his counterparts in four German states where Opel factories are located.

GM Europe proposed Friday that Opel loosen its ties with the U.S. parent company and said it would need €3.3 billion in financing or guarantees from European authorities over the next two years. The aim would be to pay the money back in 2014 or 2015.

Forster said the company envisions Opel and its British sister unit Vauxhall becoming a "legally demarcated, at least partly independent business unit."

Employee representatives have advocated spinning off Opel from General Motors Corp., which reported a $9.6 billion fourth-quarter loss on Thursday amid the worst U.S. auto sales climate since 1982.